01:05 AM EDT, 05/13/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We cut our 12-month target to $56 from $73, 23.2x our 2024 EPS estimate, near the low end of PZZA's long-term forward P/E trading range of 21x-40x, reflecting the risk of weaker top- and bottom-line growth. We cut our 2024 EPS to $2.41 from $2.64 and 2025's to $2.83 from $3.10. Revenue of $514M (-2.5% Y/Y) was $29M below consensus. Adj-operating income rose 10.4% Y/Y to $43.2M vs. $36.7M consensus with margin widening 10 bps Y/Y to 8.4%. North America comp sales fell 2%, driven by lower transactions and average ticket. We note the growth in aggregator channels was more than offset by a drop in organic delivery. International comp sales also fell 3%, mainly due to the Middle East conflict (-4% impact). Given the near-term headwinds, PZZA lowered its guidance for comp sales and adj-operating income. Despite our optimism about potential benefits from PZZA's Back to Better 2.0 strategy and its new products (i.e., Crispy Cuppy 'Roni), we prefer to stand on the sidelines until demand trends show signs of rebounding.